Step 2: Decide What Type of Adoption You Want to Pursue

Even if you already know that you want to adopt a child who has special needs, you still need to make a number of choices about your adoption. Most importantly, you need to decide what type of child you are willing to bring into your family. What disabilities and challenges (physical, mental, emotional, or behavioral) can you comfortably handle? What age range, background, and ethnicity would fit best within your household and community? Are you open to helping your adopted child maintain contact with some of his or her birth relatives? Can you welcome a group of two or more siblings into your home?

Next, you might want to consider whether you would rather work through a public or a private adoption agency. Though most children who have special needs become available for adoption through the public foster care system, both public and private agencies can help you locate a child or sibling group to adopt.

In general, the differences between public and private agencies can be summarized as follows:

Public Agencies-

*charge nothing or very little for adoptions;
*may respond more slowly to inquiries;
*place mostly children who have special needs; and
*typically have flexible eligibility requirements for adoptive parents.

Private Agencies-

*usually charge more than public agencies;
*may respond more quickly to inquiries;
*have access to diverse populations of available children; and
*may target specific groups of parents for adoption (based on factors like age, race, religion, etc.)

Step 3: Investigate Ways to Cover Adoption Expenses

Many agencies do not charge service fees to families who adopt children with special needs. However, you will need a home study, and because adoption is a legal process, you may need an attorney. The cost of a home study can vary from $0 to $2,000. Attorney fees and court costs can range from $1,000 to $2,000, and special needs adoptive families often incur additional costs for medical services, counseling, etc.-costs that may continue throughout the child's lifetime. Fortunately, due to federal and employer-initiated programs, parents have several options for covering the cost of special needs adoption.

Loans

Many loans are project- or item-specific, but some can be used for whatever the borrower wants. Two such flexible loans are home equity loans (money borrowed against the value of your house) and insurance loans (money borrowed against the value of your life insurance policies). These loans come with relatively low interest rates and a choice of payment terms. To learn more, contact a bank or mortgage broker, or your insurance company.

In addition, some banks offer loans specifically for adoption expenses. First Union National Bank, for instance, operates an adoption financing program to augment employer-provided adoption assistance or help workers who do not have such assistance. To learn more, contact First Union's Rick Woo or Debbie Morocco at 888-314-KIDS.

Founded in 1994 by adoptive parents, the National Adoption Foundation (NAF) provides eligible families with financial assistance, services, and support before, during, and after their adoptions are finalized. NAF's programs are available to all types of adoptive families, including those who adopt from foster care. Learn more from:

National Adoption Foundation (NAF)
100 Mill Plain Rd.
Danbury, CT 06811
203-791-3811
e-mail: info@nafadopt.org
web: www.nafadopt.org

Employer Assistance

Employers who offer adoption benefits may provide workers with:

*direct cash assistance for adoption expenses;
*reimbursement of approved adoption expenses;
*paid or unpaid leave (beyond federal leave requirements established through the Family and Medical Leave Act of 1993); or
*resource and referral services.

To request a list of employers who provide adoption benefits or learn more about employer-provided adoption benefits, contact: Adoption Benefits Coordinator, National Adoption Center, 1500 Walnut Street, Suite 701, Philadelphia, PA 19102; 800-TO-ADOPT or 215-735-9988.

Tax Credits and Exclusions

Through tax year 2001, adoptive parents whose annual adjusted gross income is $115,000 or less can take advantage of up to $6,000 in tax credits or exclusions to offset qualifying adoption expenses for a domestic special needs adoption. For detailed information about the credit and exclusion, review IRS Publication 968, "Tax Benefits for Adoption." Get a copy by calling 800-829-3676 or checking the Internal Revenue Service's web site at www.irs.ustreas.gov.

Adoption Subsidies

If you adopt a child who has special needs, he or she may be eligible for a federal or state adoption subsidy (also known as adoption assistance). Adoption assistance payments are designed to help offset the short- and long-term costs associated with adopting children who need special services. In general, children who are in the custody of state or county child welfare agencies (or private agencies under contract with the state to accept custody of foster children) are eligible for adoption assistance benefits.

Benefits available through subsidy programs vary by state, but commonly include:

*monthly cash payments-up to an amount equal to the foster care payment the state would have made if the child were still in basic family foster care
*medical assistance-Medicaid benefits are provided through the federal program and some state programs. States must also offer health insurance for children whose parents have a signed adoption assistance agreement with the state if the children's special needs are based on a need for medical, mental health, or rehabilitative care
*social services-post-adoption services such as respite care, counseling, day care, etc.
*nonrecurring adoption expenses-a one-time reimbursement (depending upon the state, between $250 and $2,000) for costs such as adoption fees, court costs, attorney fees, physical or psychological examinations, and other expenses related to the legal adoption of a child who has special needs

Before adopting a child who has special needs, ask your agency about federal and state subsidies. To learn more about federal and state subsidy programs, click here or contact NACAC's Adoption Subsidy Resource Center at 800-470-6665.

Credits: North American Council on Adoptable Children (NACAC)